Packet Page 155 October 13, 2022 Massachusetts Gaming Commission 101 Federal Street, 12th Floor Boston, MA 02110 Dear Commissioners: We write to ask that the Massachusetts Gaming Commission (“Commission”) reconsider the Publicly communicated timelines for launching sports wagering in the Commonwealth to allow for retail and mobile operators to go live at the same time. During the Commission's meetings on October 6 and October 7, 2022, Commissioners stated a timeline to begin retail sports wagering in January in time for at least part of the NFL playoffs and the Super Bowl, while delaying the launch of mobile sports wagering until a few months later. This decision to launch mobile sports wagering after retail sports wagering would artificially limit consumer choice and consumer protections, stunt the state's sports wagering market, and put mobile first operators, such as DraftKings, at a competitive disadvantage compared to others. Draftkings urges the Commission to set one universal launch date for all sports wagering in the Commonwealth that encompasses both in person and online wagering, Based on the discussion during the Commission's meeting, it is clear that the timeline decision was made not for policy reasons but, rather, because the Commission believes that it will be challenge to promulgate regulations in a timely manner. We respectfully request the Commission reconsider, as other states have recently been able to successfully codify regulations for ret and online sports wagering at the same time and launch both verticals simultaneously. Last year, Arizona's Department of Gaming was able to draft, enact, and approve both mobile and retail operators in less than six months, allowing operators that were prepared to launch to accept wagers beginning on the same day at the start of the NFL season, both in-person and online. In a more recent example, Kansas launched both in-person sports wagering at the state's casinos and racinos, as well as online sports wagering, on the same day last month. Similarly, Ohio has set a universal go live date of January 1, 2023 for all sports wagering regardless of channel, where retail, mobile, and other permissible forms of sports wagering will all go live at the same time. If the planned sports wagering timelines are followed, the Commonwealth will be limiting the choices ofits constituents. In states with both retail and mobile wagering, over 90% of all bets are placed through mobile channels. Massachusetts not supporting this type of wagering for the biggest sporting event, and biggest sports wagering event, of the year would be a mistake and would miss an important opportunity to get Bay Staters onto regulated sports wagering platforms and away from the illegal market. Massachusetts has a long record of leading the nation in consumer protections, and we respectfully urge the Commission to not let another NFL Playoffs and Super Bowl take place where people are wagering on the illegal market, exposing their personal and financial information and providing no recourse if an illegal sports wagering operator decides to take advantage of consumers. ‘A staggered sports wagering launch also materially impacts state revenue, As previously mentioned, many sports bettors prefer placing mobile bets to retail bets and requiring people to drive to three brick and mortar locations in the Commonwealth could lead to significant volume of bets continuing to go to 1) neighboring states such as Connecticut, New Hampshire, New YorkPacket Page 156 and Rhode Island with legal and regulated mobile sports wagering, and 2) illegal online operators that continue marketing to persons located in the Commonwealth. The NFL Playoffs and the Super Bow! are a significant customer acquisition moment in time for regulated operators that will allow the regulated operators to bring customers on to their platforms and keep them there. The illegal market may have an even bigger advantage in Massachusetts as a result of a staggered launch: confusion. Bettors may think that their ability to place wagers in person at locations in the state means that the mobile wagers they place in the state are with reputable, regulated operators when they are not. According to research performed by the American Gaming Association, the majority of consumers believe it is important to only bet through legal operators, but over half of consumers who placed wagers with illegal operators believed they were wagering legally and that confusion will only become worse if retail sports wagering in the state is authorized but mobile is not yet authorized. The final point we wish to raise is about competition and equality among operators. The authorizing law envisions a market of up to fifteen sports wagering operators, The authorizing law also requires substantial investment in the form of licensing fees, regulatory costs, staffing, product customization and marketing to name a few and the investment by operators is substantial, Draftkings has invested heavily in the Commonwealth since our founding here in 2011. We currently employ over 1,400 people at our headquarters in Boston and have continued to expand our operations here over the years. Allowing certain sports wagering operators to accept wagers before other sports wagering operators creates an unlevel playing field. Instead, Draftkings requests that all sports wagering, both in-person and online, be permitted to go live at the same time, and sports wagering operators that are licensed and prepared to accept bets should be allowed to do so. To conclude, we respectfully request the Commission use its broad rulemaking authority to promulgate rules and launch retail and mobile sports wagering at the same time. The authorizing statute expressly permits temporary licensing and emergency rulemaking and many operators wishing to offer sports wagering have been vetted and licensed by numerous other sports wagering jurisdictions across the nation. We appreciate your consideration on this important matter. Sincerely, Draftkings Inc. 1 https://www.americangaming, org/new/new-